The accumulative pension system existing in many European countries is in deep crisis. The state with the Apennines is no exception. Although a pension in Italy currently allows elderly people to live more or less with dignity, after a couple of decades, without undergoing changes, it will not be able to cope with this task. The situation is not facilitated by the application of the quota and mixed type of calculation of this state aid.
General information
The Italian pension system dates back to 1898. Then the National Insurance Fund for Aging and Disability of Industrial Workers was created. This society received contributions from the owners of factories and factories, as well as from the state.
Since 1919, these contributions have acquired the status of compulsory, and in 1933 the fund received a new name - the National Institute of Social Security. After some time, pension payments were introduced in connection with the acquisition of occupational diseases and with the loss of the breadwinner, and the age of workers' retirement was reduced. In addition, the amount of minimum payments for work experience was established.
In 1995, reforms were carried out in the pension system. They determined the age at which retirement is allowed in Italy, and the methodology for calculating the amount of the benefit depending on the total amount of contributions to the Pension Fund (hereinafter referred to as the Pension Fund). And already from the beginning of 2021, pensions began to be accrued according to new rules.
Types of pensions in Italy
There are two types of pensions in Italy:
- Social pensions - state assistance to the needy and socially unprotected:
- pensions for elderly people with no income;
- payments to low-income families;
- disability pensions.
- Labor pensions. They are:
- old age;
- by length of service;
- loss of a breadwinner;
- for permanent disability;
- old age allowance;
- pension to citizens who have been working outside the territorial boundaries of the homeland. Provided by the Convention on the possibility of offsetting seniority;
- old age allowance.
These payments depend on many factors, which will be discussed below.
Retirement age in Italy
The answer, at what time they retire in Italy, is still formulated as follows: people who have crossed the age mark of 66 can go on a well-deserved rest.
In 2021, the age limit will be lowered: it will be possible to retire by celebrating your 62nd birthday. But provided that the length of service is at least 38 years. This law, signed by Italian President Sergio Matarella, will enter into force in the spring of 2021.
Of course, such a norm is contrary to the global trend. Indeed, in socially developed countries, population aging is accelerating at a rapid pace. Against this background, it would not be surprising at all if the retirement age in Italy for women and men was raised. But here everything is exactly the opposite. Moreover, the aforementioned law contains provisions that allow women to retire early at 41 years old, and men at 42 years old.
In general, the time to retire in Italy is determined by the so-called quota of 100 using the following formula:
VG + TS = 100, where
VG - the age of the citizen;
TS - seniority.
That is, for example, if TS = 36 years old, an Italian will be able to register with the Pension Fund when he reaches 64 years old.
According to Prime Minister Luigi di Mayo, the life of pensioners in Italy, like all other segments of the population, will only improve from the implementation of this law. The adoption of the new legal norm was initiated by a coalition government consisting of the right-wing populist League of the North and the left-wing populist Five Star Movement.
Pension payments
The pension payment must exceed the social benefit by at least one and a half times. This is established by Italian law. Taking into account the value of the latter indicator, equal to € 458, it is not difficult to calculate that the minimum pension in Italy should be € 687. But the pension reform in 2021 ensures that the elderly will receive at least 780 euros. Those who have worked all 38 years can apply for a large amount.
Let's draw your attention to the nuances in terminology. For example, people who have never worked due to congenital or acquired disability receive not a pension, but an allowance, since they did not make contributions to the Pension Fund on the basis of which payments are made. But we will not deviate from the usual terms: the disability pension in Italy for unemployed people is now at least € 458.
Continuing the conversation about the "quota 100" reform: an elderly person has no right to receive a pension and at the same time work. The money is credited to a special card that can be used to pay at trade enterprises. But cash withdrawals are allowed only € 100 per month.
The reform provides that an old-age pension in Italy in the amount of € 780 is paid to a citizen whose annual salary level was less than € 9 360. If this figure is higher, the amount of assistance from the state also increases. It is officially planned that this system will be implemented over the next 3 years in an experimental format.
It is not without interest what amount of state aid can be counted on for a certain level of income from work. Today the average pension in Italy is about € 1140. Compared to the average salary, this is about 93.2%.
In Russia, this indicator is noticeably lower:
- for men - 38.8%;
- for women - 32.9%.
According to the National Institute of Social Security, immigrants also make a significant contribution to maintaining the weight of pensions in the economy of the Apennine state. And the country's legislation fully contributes to this: a pension in Italy for foreigners is provided practically on the same conditions as for the indigenous people.
But taking into account such requirements:
- the period for paying contributions to the Pension Fund is at least 5 years;
- legally reside in the country for at least 10 years;
- the amount of annual income is not more than € 5 577.
The main role in the amount of pension is played not by seniority, but by the number and volume of contributions transferred by a foreigner to the Italian Pension Fund.
Features of registration of a Russian pension
Elderly people who have moved to Italy can continue to receive a Russian pension. Providing such an opportunity is the prerogative of the Pension Fund of the Russian Federation. Therefore, you should contact the Department of Pensions for Persons Living Abroad, which is part of it.
How is the pension paid
The transfer of a pension from Russia to Italy requires a citizen who has moved to permanent residence to submit the following documents to the National Institute of Social Security:
- statements;
- copies of a Russian passport;
- copies of SNILS;
- the original or a copy of the work book;
- salary certificates for any 60 consecutive months of work on the territory of the Russian Federation and the USSR, as well as states with which the relevant international agreements are in force;
- copies of military ID;
You will also need to provide a residence permit in Italy for retirees who have moved to live on the Apennine Peninsula. Wealthy elderly people draw up this document on a general basis, confirming an annual income of at least € 31,000 and the availability of acceptable housing.
Another option for a pensioner to obtain a residence permit in Italy is family reunification. It is clear that this is possible only if someone from close relatives already lives in the Apennines.
It will not be difficult to get a pension in Italy. Having a residence permit, a Russian can send a request to the Pension Fund of the Russian Federation six months before leaving for the payment of the amount due for 6 months.Upon arrival in Italy, you will need to register with the Russian consulate and take documents there:
- certificate of residence in the country. It must indicate the date of departure;
- certificate of being alive. It will need to be presented to the PF RF annually.
After that, it will be possible to apply to local authorities for cash payments. Even with a change of citizenship, no one will deprive the migrant of the Russian pension.
Pensioners from Russia in Italy
To understand how pensioners live in Italy, it is enough to study the reviews on Internet forums of the relevant topic. Below are just some of the benefits of moving older people from Russia to the Apennines:
- Higher level of health care and life in general.
- Part of the interest paid on the mortgage loan is subject to refund. Moreover, the amount is considerable. Almost a fifth, or rather 19% of the total interest payments made.
- If a pensioner passes away, 60% of his pension will be paid to his / her spouse every month.
- A pensioner with a disability can apply for an assistenza sociale, a grant of € 500 to pay for the services of a person who helps in everyday life. For example, when it is difficult to move around the apartment due to problems with the musculoskeletal system.
- The first 5 years from the date of moving to Italy are allowed not to be indicated in the annual income tax returns on investments and foreign activities.
- If you wish to return to your homeland, the right to receive an Italian pension is not lost.
Where is it better to live for Russian pensioners in Italy
Regardless of what kind of pension in Italy is accrued to a native of Russia, Sardinia and Tuscany are the most popular among older migrants. Sunny Sardinia (300 clear days a year) is one of the healthiest regions. Tuscany is famous for its rich cultural heritage and beautiful nature.
Villas by the sea in Sardinia cost from 1 million, and houses - from 300 to 800 thousand euros. Buying an apartment in Tuscany near the sea coast will cost 300-400 thousand euros, and the price of a building in the countryside hovers around 350 thousand.
A more economical option is to purchase real estate on the shores of the Adriatic Sea in the Marche region. Housing prices in rural areas are about 175 thousand euros, while on the coast - from 350 thousand. You can find cheaper apartments near the beach - somewhere in the range of 130-150 thousand euros.
Italian Deputy Prime Minister Matteo Salvini announced the government's plans to create in the south of the country - in Calabria, Sardinia and Sicily - a "tax haven" for pensioners. Aboriginal citizens and elderly foreigners who have moved to these regions will be exempt from income tax for 10 years
In Italy, the cost of living is cheaper than in Spain and France, especially in the southern provinces and in the countryside. A year of living costs about 23-29 thousand euros.
Many pensioners who moved to this country, despite their advanced age, start a new life: they visit museums, where they admire the paintings of Renaissance artists, and take part in wine tasting.
Conclusion
Contrary to the global trend, in Italy the retirement age has not been increased, but reduced: from the spring of 2021 it will be 62 years. But only if the quota of 100 is met: the amount of work experience with age must be equal to 100. The minimum pension in Italy is € 780.
